AMHERST, N.Y., Dec. 5 /PRNewswire/ -- Meritain Health, Inc., a leading
provider of health plan management services and a division of health care
services company Prodigy Health Group, has announced the acquisition of
CBSA PERFORMAX. The acquisition doubles the size of Meritain Health,
creating the nation's largest privately held manager of health benefits
plans. Financial terms of the transaction were not disclosed.
The combination of Meritain Health and CBSA PERFORMAX brings together
two companies that are passionately dedicated to helping employers control
the long-term cost of health care while providing superior customer service
and flexibility. The combined company will operate under the Meritain
Health name and maintain CBSA PERFORMAX's presence in Baltimore and
Minneapolis, as well as its regional sales and service offices. In total,
the combined company has offices throughout the country, over 1,350
employees, 1,400 clients and over a million members nationally.
The announcement reflects the considerable consolidation underway in
the healthcare services industry. It follows Meritain Health's August 2006
acquisition of Weyco, Inc., a third party medical benefits administrator,
as well as the merger between Corporate Benefit Services of America (CBSA)
and PERFORMAX, also in August 2006.
Elliot Cooperstone, CEO of Prodigy Health, said, "This acquisition is
an important step as Meritain Health pursues its continuing strategy of
controlled expansion through acquisition and the delivery of innovative
products and services. Meritain Health and CBSA PERFORMAX each have a
terrific history of providing intimate, local service while building
capabilities on a national scale to ensure our clients have access to the
most compelling products and services available. Together we will build on
Jacob L. Canova, President and CEO of CBSA PERFORMAX, will become
Chairman and CEO of Meritain Health. Mr. Canova said, "We are pleased to
bring together the very talented management teams, employees, and
value-added products and services of Meritain Health and CBSA PERFORMAX.
Both of our companies are completely committed to helping our employees
grow and succeed, and together we will continue to work tirelessly to
reward our clients for their confidence in us."
Meritain Health and CBSA PERFORMAX have had an excellent relationship
for the past eight years, as Meritain Health has provided claims services
for PERFORMAX clients. The combination strengthens both companies'
objective of offering mid-size employers comprehensive, fully integrated
health benefit services, including the design of customized, flexible plans
that incorporate advanced cost management strategies.
Mr. Cooperstone added, "Health care is a local issue and to be
successful in today's rapidly evolving health care environment, we need to
be where our clients are. That's why we're committed to delivering our
services via regional processing centers and locating our sales and service
offices close to our clients. The combination of Meritain Health and CBSA
PERFORMAX will benefit our clients by creating one of the most extensive
footprints in our industry."
Meritain Health also announced that Ian Gordon has been named President
and Chief Operations Officer, and Steve Adamson has joined the company as
Senior Vice President and General Manager of the Minneapolis office. Mr.
Gordon was formerly Chief Operations Officer of Concentra Network Services,
and Mr. Adamson most recently was Vice President-Enterprise Business
Operations at USAA.
Goldman, Sachs & Co. arranged financing for the transaction.
About Meritain Health
Meritain Health is the country's largest independent provider of
services for self-funded health plans. Meritain Health serves over 1,400
self-funded clients and over a million members nationally. The company
provides plan administration, innovative wellness, medical management,
disease management, network management, and cost management services.
Meritain Health is also a pioneer and now the leading independent provider
of Consumer Directed Health Plans. Meritain Health employs over 1,350
people, with headquarters in Amherst, NY and regional offices in 28 cities
across the country. http://www.meritain.com
About Prodigy Health Group
Prodigy Health Group is a health services holding company. Prodigy
Health Group operating companies provide benefits management, total health
management, provider network services and insurance services to self-funded
employers, managed care companies and insurers. Prodigy Health companies
serve over 3.5 million members across all industry sectors and Prodigy
Health Group is continuing to pursue an aggressive growth strategy through
synergistic health services acquisitions and organic growth.
SOURCE Meritain Health, Inc.